PET Daily Review: Polyester Bottle Flake Market Pulls Back Amid Weak Feedstock Support

1 Today’s Summary

Mainstream producers' March cargo prices are quoted at RMB 9,100–9,250/ton, with Yisheng's basis at 500.

② Today, the domestic PET bottle chip capacity utilization rate reached 72.50%.

2. Spot Market Overview

Table 1: Summary of Domestic Polyester Bottle Flake Prices (Unit: RMB/ton)

Based on the East China region, the spot price of PET bottle-grade material today is 8850, a decrease of 150 from the previous working day.

Today's polyester bottle chip market showed a downward trend. Affected by the decline in crude oil and raw materials, the main cargo in the East China market opened higher at 9000-9200 in the morning. However, it fell significantly to 8800-9000 by the end of the morning session. In the afternoon, driven by a surge in crude oil, polyester bottle chip prices rebounded along with other energy and chemical products, but the rebound was limited. By the end of the trading day, spot transactions were negotiated within the range of 8700-8900. The spot basis for main cargo was a premium of 300-350 over the 2605 contract. Buyers and traders showed low willingness to purchase, leading to a stiff trading situation.(Unit: RMB/ton)

3. Production Dynamics

Today, the capacity utilization rate of PET bottle-grade chips reached 72.50%. Regarding profitability: the raw material PTA price fell to RMB 6,775/ton, the MEG price fell to RMB 4,740/ton, the polymerization cost decreased by RMB 197.44/ton to RMB 7,407.63/ton, and the PET bottle-grade chips profit stood at RMB 842.38/ton.

4. Market Sentiment

Table 2: Domestic Polyester Flake Industry Downstream and Upstream Participants' Sentiment Expectations (Updated on Monday)

5. Price Prediction

Insufficient raw material supply, coupled with sharp market fluctuations and backlogged delivery orders, has dampened traders’ willingness to take positions. Downstream users continue to purchase only to meet immediate demand, with little willingness to stockpile. Affected by raw material constraints, the PET bottle-grade chip market is expected to remain sluggish, with the estimated spot price for water-grade material in the East China market tomorrow ranging from RMB 8,600 to 8,900 per metric ton.

6. Related Product Information

PTA Market: Today, the PTA market in East China remained weak and fluctuated. The basis continued to weaken. Overnight, crude oil dropped sharply, which suppressed market sentiment. The spot market opened around 6980 in the morning. Although crude oil prices rebounded during the day, due to concerns over the demand side, the market lacked substantial driving force, and buying interest was slightly insufficient. The market remained in a wide range of fluctuations throughout the day, with an overall quiet atmosphere. Regarding the basis, due to poor sales of downstream sectors, concerns over weakening demand increased, leading to a continued weakening of the basis. It was reported during the day that transactions of 05 contracts were at a discount of 70-80. (Unit: RMB/ton)

MEG Market: Today, the ethylene glycol (EG) market experienced a corrective consolidation. Affected by a decline in crude oil prices, the Zhangjiagang EG spot price opened lower at around RMB 4,750/ton in the morning session. A brief rebound occurred during the morning, but limited buying enthusiasm led to renewed downward pressure. In the afternoon, a sharp rebound in crude oil prices triggered a broad-based rally across the chemical commodities sector, improving market sentiment for EG; however, the upside momentum remained modest. Ultimately, the spot price settled in the range of RMB 4,746–4,747/ton. The spot premium (vs. May futures) initially weakened then strengthened: it opened near May-88 in the morning, gradually strengthened throughout the session, and settled near May-80. In the South China market, local producers continued to impose supply restrictions; thus, market offers were primarily from Fujian-based suppliers. Buyers remained cautious regarding purchases at higher price levels, resulting in sluggish trading activity.

7. Data Calendar

Table 3: Domestic Polyester Bottle Flakes Data Overview (Unit: 10,000 tons, %)